Reliance signs pipeline deal with GSPL

Vol 10, PW 10 (07 Sep 06) News in Brief

Reliance has agreed to let Gujarat State Petronet (GSPL) flow D6 gas from the Krishna Godavari basin through a pipeline from Bharuch to its refinery at Jamnagar.

Agreement was reached on 1st September between GSPL managing director DJ Pandian and Reliance bosses in Mumbai. Reliance wants GSPL to lay a 30-inch 125-km pipeline from Bharuch to Anand and another 125-km pipeline from Rajkot to Jamnagar.

Gas is already flowing to ceramic industries through a pipeline between Anand and Rajkot. Reliance plans to flow 11m cm/d in Phase-I through the new pipelines, netting Rs170cr ($38m) per annum for GSPL in transmission charges.

This will rise to 14m cm/d, netting Rs210cr ($47m). Eventually, Reliance plans to flow 20m cm/d through the pipeline after it doubles Jamnagar refinery capacity from 33mt/y to 60m t/y.

Reliance wants GSPL to complete the job by June 2008 to coincide with the arrival of first KG gas from D6 to Gujarat.

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